Report: Enterprise AI Struggles to Find Organizational Backing
Many organizations aren’t using enterprise cognitive computing, a type of artificial intelligence, according to a new study, despite much interest. The reason might be a lack of structured strategy.
Artificial intelligence is one of those things that has gotten a lot of notice over the years, but organizations haven’t quite figured out how to adopt it yet.
That’s according to a study from researchers at the Centre for Technological Futures at Lancaster University Management School, as well as the Center for Information Systems Research at MIT Sloan School. The two schools found that, of the 150 organizations they studied, only around half of them had adopted enterprise cognitive computing, a form of AI tailored to large organizations.
And even of the organizations that had, only half of those believed that ECC had produced measurable value.
“This suggests that generating value from such AI is not easy if organizations do not develop the needed capabilities and practices,” noted Monideepa Tarafdar, the co-director of Lancaster’s Centre for Technological Futures, in a news release.
The report notes that ECC, when implemented at scale, could help do things such as manage call centers, identify fraud, create legal applications, and handle processes for managing equipment maintenance.
“The power of ECC applications stems from their ability to reduce search time and process more data to inform decisions. That’s how they enhance productivity and free employees to perform higher-level work—specifically, work that requires human adaptability and creativity,” the report said. “Ultimately, ECC applications can enhance operational excellence, customer satisfaction, and employee experience.”
While interest is high due to its potential for cost-savings, the report shows that it has been difficult to figure out application strategies for ECC. In her comments, Tarafdar notes that much of the benefit will emerge when well-considered business practices are put into place.
“Having the proper capabilities in place enables employees to execute the new practices, and the practices in turn strengthen the capabilities of the ECC programmes,” she said. “Such a virtuous cycle can lead to dramatic improvements in operational and financial performance, and customer satisfaction.”
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